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The San Diego County Employees Retirement Association has recovered just over a quarter of its original investment in collapsed hedge fund Amaranth Advisors. The pension plan recently threatened legal action against the fund over its losses.

The San Diego pension plan has so far recovered $48m (€37m) of its $175m investment in Amaranth,
a Connecticut-based hedge fund which lost $6bn, or two-thirds of its assets, last year after making bets on natural gas prices.

The $7.6bn pension scheme said it has received two payments from Amaranth late last year, the first for $12.5m in November and a second payout in December for $35.5m. San Diego expects to receive additional payment from Amaranth, but is uncertain of the amount.

The remaining amount to be returned depends on whether Amaranth takes gains or losses on the sale of its remaining assets.

In November, San Diego hired law firm Bernstein Litowitz Berger & Grossmann to consider taking action after the pension fund lost more than $105m in the Amaranth collapse. The pension fund also ended its agreement with Rocaton Investment Advisors, the investment consulting firm that recommended it put money in Amaranth Advisors.